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To: bambs who wrote (47669)1/31/2001 8:44:48 PM
From: The Phoenix  Read Replies (2) | Respond to of 77400
 
I'm sure we bears we'll regain control just after March.

Reminds me of the bulls that said the same thing as AG was raising rates. Now you're suggesting the exact opposite - that the bears will regain control in the face of tax cuts, increasing money supplies, and reducing rates. Don't fight the fed. The bulls learned that... looks like it's the bears turn in the box.

OG



To: bambs who wrote (47669)2/1/2001 12:32:24 AM
From: chic_hearne  Respond to of 77400
 
Hi Bambs,

This part is worth re-reading for anyone:

What everyone seems to not understand is the ecomony didn't go from white hot to what looks like a recession because of rate hikes. Easing will not bring the market and the economy back. The reason?!? The economy was white hot cause everyones assets were going up in value and people were spending more money then they make at there "day jobs"
We had a negative savings rate as a percentage of disposable income. That can't go on for every. As the stock markets ripped and the housing market ripped people felt rich. They spent like mad. Not only are they going to change because of the money they have currently given back in the market but the main change will come as they come to understand that the easy money making days are gone. As they go from not saving what they make at there jobs to saving 7% or so it will continue to slow the economy. Earnings continue to suffer the stocks will go down with them.


My thoughts exactly. I couldn't have said it better myself and I am a full believer it's the nature of things when the stock market *becomes* the economy. By Stock Market/GDP levels, nobody has seen anything worse as far as bubbles go, Japan in '89 or the US in '29 included.

Best of luck in these difficult times

Bambs, I don't need luck, just when is the time to sell more Crisco?

chic